Hewlett Packard won’t drop its UK claim against tech mogul Mike Lynch, who died when his yacht sank

By Aradhana Jha On Sep 4, 2024 Share with new partner:

LONDON (AP) — Hewlett Packard Enterprise (HPE) announced on Monday that it will not withdraw its U.K. damages claim against the estate of British tech mogul Mike Lynch, who tragically died last month when his superyacht sank off the coast of Sicily.

In 2022, Britain’s High Court largely ruled in favor of the U.S. tech company, which had accused Lynch and his former finance director, Sushovan Hussain, of fraud related to its $11 billion acquisition of Lynch’s software company, Autonomy. HPE is seeking up to $4 billion in damages, with a final decision on the exact amount expected soon.

Lynch perished on August 19 when his yacht, the Bayesian, was caught in a storm and sank. His widow, Angela Bacares, could now potentially be held liable for the damages.

Earlier this year, Lynch had been acquitted of separate fraud and conspiracy charges in a U.S. criminal trial concerning the same deal.

HPE initially hailed the 2011 acquisition of Autonomy but quickly regretted the purchase. The company stated on Monday that it had “substantially succeeded” in its civil fraud claims against Lynch and Hussain and intends to see the legal proceedings through to the end.

Despite HPE’s intentions, the judge in the U.K. civil case has already indicated that the damages awarded will be “substantially less” than the amount the company is seeking.

A spokesperson for Lynch’s family declined to comment on the matter.

Lynch and his daughter Hannah were among six passengers who lost their lives when the 56-meter (184-foot) luxury yacht sank. The yacht’s chef also died, while 15 others survived the incident. The group had gathered on the yacht to celebrate Lynch’s acquittal.

Initially, officials suggested that a waterspout, a tornado-like weather phenomenon over water, caused the yacht to sink. However, this was later revised to a downburst. Italian prosecutors are now investigating the yacht’s captain for potential charges, including manslaughter.